Cisco reported year-on-year declines in both sales and profits in its third quarter, but the fall was not as bad as predicted
Networking sector bellwether Cisco reported a 5.5% fall in revenues and a 12% drop in net profits at the end of its third quarter, but the declines exceeded previous guidance and comfortably beat the market’s expectations.
Cisco’s third quarter sales clocked in at $11.5bn, while generally accepted accounting principles (GAAP) net income came in at $2.2bn, the firm reported after the stock markets closed in New York on 13 May.
For the first nine months of its fiscal 2014, Cisco has now banked $34.8bn, down from $36.2bn this time last year, and net income of $5.6bn, down from $7.7bn in the year-ago period.
CEO John Chambers hailed Cisco’s ability to “demonstrate clear progress on returning to growth”.
“The entire team is focused on moving Cisco forward aggressively and we remain confident in our long-term goal to be the number one IT company," he said.
In the UK, Cisco said it saw evidence of growing economic stability, with orders up 7%.
The supplier also called out good momentum on high-end routing products and growth of just under 30% on datacentre sales. Last summer’s acquisition of security specialist Sourcefire, meanwhile, pushed Cisco’s global security sales up 10%.
Cisco’s third quarter was notable for, among other things, the launch of the Cisco Intercloud for the Internet of Everything (IoE), a distributed network and security architecture that Cisco boasts is designed for “near infinite scalability”.
It also announced a Smart City Global Strategic Alliance to deliver the IoE through edge analytics and cloud technologies to “dramatically change the way cities are managed and safeguarded”.
Image courtesy of camknows/Flickr